Why we contribute exit fees back into the fund

After our first year in operation, in late 2023 we made changes to the establishment documents of the Merx Wholesale 1 PIE Trust to provide greater clarity on the treatment of exit fees. The documents now state clearly that exit fees, if payable, will be contributed back into the fund – not to us as managers.

Here’s our rationale.

Exit fees explained

Exit fees are a common feature in investment funds, generally payable to help manage the impact of short-notice withdrawals on the remaining investors. For the Merx Wholesale 1 PIE Trust, an exit fee of 2.5% of the withdrawal amount is payable if withdrawals are made with less than six-months’ notice.

Why direct exit fees back to the Fund?

Our recent clarification is about where these exit fees go. Unlike some funds where exit (or even entry) fees may end up as additional revenue for the managers, we have taken a different approach. If payable, exit fees are contributed back into the fund itself.

As always, our goal has been to simplify.

Early withdrawals pose a risk and inconvenience to other investors in the fund; they can create a drag on the fund’s overall performance – therefore, investor returns. By directing fees back to the fund, we can balance the fund’s liquidity with the flexibility for investors to exit.

This decision reflects our core principle of shared risks and rewards amongst all investors, including us as managers. Once again, it’s about building the fund we want to be a part of – a fund that’s committed to fairness, transparency, and alignment of interests.

Like to join us on this journey?

Click here to learn more or give us a call on 09 215 9364 to discuss further. We look forward to hearing from you.

Note: This article is intended to provide general information and does not constitute financial advice. We recommend you speak with a financial adviser for advice tailored to your individual circumstances. Potential investors with Merx must qualify as Wholesale Investors as that term is defined in sections 3(2)(a) – (c) or 3(3)(a) of Schedule 1 of the Financial Markets Conduct Act (“FMCA”). The Trust is not suitable for retail investors.

30.75

%

Returns Since Inception

Returns based on an actual company investor account with net returns re-invested monthly. Past performance is not a guarantee of future performance. The fund was established 30 June 2022 and made its first investments in September 2022.

Why Invest with Merx

About the Merx Wholesale 1 PIE Trust: Structure, principles: management and more

Comments from Merx Investors

I have enjoyed investing with Merx and learnt a lot through the process too. Merx have been very transparent with what they do and the communication has been consistent. Wouldn’t be a testimonial without mentioning the returns too, thanks for those. Looking forward to being a part of the journey for years to come.

Luke

There's a lot to be said for a fund where the managers invest alongside their investors. It's a real partnership where the interests of investors are prioritised. The returns to date have been great, the unit structure gives me the flexibility I want, and I've been really impressed with the communication.

Aaron

I've been impressed by how Merx looks after their investors - from how the fund is structured for redemption, reinvestment, and tax efficiency - to the communication and care in understanding my investment goals. It makes a difference - investing alongside managers who are also invested in the fund.

John

Aligned Interests

Aligned interests is a core principle of the Merx Wholesale 1 PIE Fund. As the Trust’s management team, we personally invest alongside our investor partners. We have the same risks and potential returns as our investors.

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Get the detail – fund description, management, fees, risks and more. Request the Merx Wholesale 1 PIE Trust Investor Brochure here.
Request the Merx Wholesale 1 PIE Trust Investor Application form here. Note: the fund is not suitable for retail investors.

Merx Wholesale 1 PIE Trust Returns

Year 1 actual net return (on company investor portfolio reinvesting)

20.13%

 

Average monthly distribution (annualized)

17.41%

 

Returns since inception

30.75%

Returns based on an actual company investor account with net returns re-invested monthly. The fund was established 30 June 2022 and made its first investments in September 2022. Past performance is not a guarantee of future performance.

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*Returns are net actual returns distributed to investors (annualized) – net of all fees and costs before tax. The fund was established 30 June 2022 and made its first investments in September 2022. Past performance is not a guarantee of future performance.

Investor Brochure

Important information for investors

Investment in the Trust is open only to wholesale investors as set out in schedule 1, clauses 3(2)(a)-(c) and 3(3)(a) (inclusive), or persons who are otherwise not required to receive disclosure under Part 3, of the Financial Markets Conduct Act 2013 (“FMCA”).

Investor Application

Important information for investors

Investment in the Trust is open only to wholesale investors as set out in schedule 1, clauses 3(2)(a)-(c) and 3(3)(a) (inclusive), or persons who are otherwise not required to receive disclosure under Part 3, of the Financial Markets Conduct Act 2013 (“FMCA”).